Report of Strategic Director (Finance and Resources) to follow

The Cabinet considered a report of the Strategic Director (Finance and Resources) reviewing the proposed development of the Seaway Car Park and associated land and the Agreement for Lease and Sale dated 10^th December 2014 made between the Council and Turnstone Southend Limited.

The report dealt with the proposed Development in the context of the Council’s land ownership, regeneration and economic development responsibilities.  It was noted that whilst the strategic planning context was mentioned in the report, the planning application recently submitted for the Development (Ref: 18/02302/BC4M) must be considered quite separately by the Council as local planning authority through the Development Control Committee.

On consideration of the report the Cabinet Member for Growth put the following questions to the Strategic Director, Finance and Resources (Council’s Section 151 Officer):

• Are you satisfied that this is a good deal for the Council, from a financial point of view?
• Have you and other relevant Council staff personally checked the figures in the report and are content with their accuracy?
• Are you satisfied that the Council has not only obtained a S123 assessment from Savills but that it has also had this independently reviewed by the District Valuer Service which has ‘signed it off’?
• Are you satisfied that the Council has a sufficiently independent, up-to-date, valuation on the site?
• Are you satisfied that the Council has done everything that it reasonably could to gather the facts to decide as of today whether this is a good deal for the Council?

The Strategic Director answered “yes” to each of the questions.

Resolved:

1. That it be noted, that unless either party takes a decision to terminate, the Agreement for Lease and Sale dated 10 December 2014 made between the Council and Turnstone Southend Limited (“the Agreement”)  for the development of the Seaway Car Park and associated land (“the Development”) remains in full legal force. 

2. That the Council does not seek to terminate the Agreement at the present time, but maintains its support for the Development based on the strong and viable economic case, the fresh independent valuations under S.123 Local Government Act 1972, the contribution to the Council’s published Ambition and Outcomes, the level of commitment (including investment) made by Turnstone and the progress which has been made to date.

3. That the contractual ‘End Date’ of 10 December 2018 be extended to 17 January 2020 for the discharge of all conditions (including obtaining planning permission) in the Agreement to be dealt with so that the Lease can be granted.  Under the Lease, practical completion is then required within 3 years of granting the Lease which necessitates an early start on site. 

4. That amendments be made to the Agreement as set out in section 5.8 of the submitted report, including the extension of time referred to in recommendation 3 above, on the basis of the fresh valuations referred to in sections 6.2 (e) and 9.2 and attached at Appendices 4 and 5 to the report.

5. That the Chief Executive, in consultation with the Group Leaders and the Cabinet Member for Growth, be authorised to make further minor amendments to the Agreement if required.

6. That the agreements with Homes England in relation to 1-3 Herbert Grove, 29 Herbert Grove and the Rossi Factory (31 Herbert Grove) as set out in section 5.11 of the report be completed.

Reasons for decision:

To enable realisation of the Council’s long-held ambitions and aspirations for the regeneration of the Seaway Car Park and associated land to deliver the significant, place-changing regeneration and economic benefits set out in the report and to demonstrate that Southend is proud to act in the interests of local residents.  The delivery of the Development will enable the Council to make significant progress in achieving its 2050 Ambition and many of the recently adopted Outcomes across a range of themes.

Other options:

To seek to terminate the Agreement, but there would be adverse consequences as referred to in Section 6.3 of the report.

Note: This is an Executive Function

Referred direct to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Courtenay